Headline Inflation

Oriental Mindoro’s headline inflation or overall inflation slowed down further to 2.8 percent in March 2025 from 3.4 percent in February 2025. This brings the provincial average inflation rate from January to March 2025 to 3.3 percent. Inflation in March 2024 was higher at 3.1 percent. (Tables 1, 2, and Figure 1)

Main Drivers to the Downward Trend of the Headline Inflation

The downtrend in the overall inflation in March 2025 was primarily brought about by the slower annual increment in the index of food and non-alcoholic beverages at 3.0 percent in March 2025 from 4.2 percent in the previous month. Also contributed to the downtrend was the faster year-on-year decrease in the transport index at 2.3 percent during the month from a 0.7 percent annual drop in February 2025. In addition, a slower inflation rate was recorded for housing, water, electricity, gas, and other fuels at 5.0 percent in March 2025 from 5.2 percent in the previous month.

Moreover, slower annual increases were noted in the indices of the following commodity groups in March 2025:

a. personal care, miscellaneous goods, and services, 1.4 percent from 1.8 percent;
b. alcoholic beverages and tobacco, 4.8 percent from 5.5 percent;
c. recreation, sport, and culture, 2.4 percent from 3.5 percent; and
d. furnishings, household equipment, and routine household maintenance, 0.4 percent from 0.6 percent.

On the contrary, compared with their previous month’s inflation rates, higher inflation rates were observed during the month in the indices of clothing and footwear at 1.8 percent from 1.6 percent; health at 1.7 percent from 1.4 percent; and restaurants and accommodation services at 3.2 percent from 1.5 percent.

The indices of the rest of the commodity groups retained their respective previous month’s annual rates. (Figure 2)

Main Contributors to the March 2025 Headline Inflation

The top three commodity groups contributing to the March 2025 overall inflation of the province were the following:

a. Food and non-alcoholic beverages with 45.6 percent share or 1.28 percentage points;
b. Housing, water, electricity, gas, and other fuels with 38.3 percentage share or 1.07 percentage points; and
c. Restaurants and accommodation services, 7.9 percent share or 0.22 percentage point.

Food Inflation

Food inflation in Oriental Mindoro eased to 3.0 percent in March 2025 from 4.3 percent in the previous month. In March 2024, food inflation was higher at 3.8 percent.

Main Drivers to the Downward Trend of Food Inflation

The deceleration of food inflation in March 2025 was primarily brought about by the slower inflation rate of meats and other parts of slaughtered land animals at 21.8 percent during the month from 27.6 percent in February 2025. This was followed by the faster year-on-year decline of rice at 13.9 percent during the month from a 10.9 percent annual decrease in February 2025, and fruits and nuts at 5.1 percent in March 2025 from 8.7 percent in the previous month.

INFLATION RATE BY FOOD GROUP

Moreover, slower year-on-year increases were observed in the indices of corn at 1.9 percent in March 2025 from 3.3 percent in the previous month, and flour, bread and other bakery products, pasta products and other cereals at 1.7 percent during the month from 1.8 percent in the previous month.

On the other hand, higher annual growth rates during the month were observed in the indices of the following food groups:

a. Fish and other seafood, 4.9 percent from 1.1 percent;
b. Milk, dairy products, and eggs, 2.1 percent from 1.8 percent;
c. Oils and fats, 9.8 percent from 8.4 percent;
d. Vegetables, tubers, plantains, cooking bananas, and pulses, 5.9 percent from 5.8 percent; and
e. Ready-made food and other food products n.e.c., 4.0 percent from 3.1 percent.

In addition, a faster annual increment was noted during the month in the index of sugar, confectionery, and desserts at 0.9 percent from 1.5 percent annual drop in February 2025. (Figure 3)

Purchasing Power of the Peso

The Purchasing Power of Peso (PPP) in Oriental Mindoro remained at Php 0.73 in March 2025.

As a result, the amount of goods that could be presently purchased by consumers was less than when the PPP was higher. Furthermore, the decrease in PPP was attributed to the higher inflation rate, given that PPP and inflation rate have an inverse relationship.

(SGD) CHARLYN ROMERO-CANTOS, PhD
(Chief Administrative Officer)
Officer-in-Charge
Oriental Mindoro Provincial Statistical Office

HTD/JGO

TECHNICAL NOTES

Consumer Price Index is an indicator of the change in the average prices of a fixed basket of goods and services commonly purchased by households relative to a base year.

Market Basket is a sample of goods and services, which is meant to represent the totality of all the goods and services purchased by households relative to a base year.

• To determine the commodities that will form the market basket for the 2018-based CPI, the Survey of Key Informants (SKI) was conducted in March 2021. The survey, which was conducted nationwide to store managers, sellers or proprietors, obtained information on the most commonly purchased of goods and availed of services by the households.

• Base year is a reference period, usually a year, at which the index number is set to 100. It is the reference point of the index number series. The CPI is rebased from base year 2012 to base year 2018.

• Inflation Rate is the annual rate of change or the year-on-year change in the Consumer Price Index (CPI).

• Purchasing Power of Peso is a measure of the real value of the peso in a given period relative to  chosen reference period. It is computed by getting the reciprocal of the CPI and multiplying the result by 100